Mortgage rate freeze reached

Mortgage rate freeze reached

By MARTIN CRUTSINGER, AP Economics Writer 30 minutes ago



WASHINGTON - President Bush announced on Thursday a plan to freeze interest rates for five years for hundreds of thousands of strapped homeowners whose mortgages are scheduled to rise in the coming months.

"There is no perfect solution," he said. "The homeowners deserve our help. The steps I've outlined today are a sensible response to a serious challenge."

Seeking to counter criticism he is violating his free-market principles, Bush said the private-sector.. Read Story
 
Posted by Latino Real Estate Community Online on 12/06/2007 01:36 PM   Comments (2)  
Post is included in group: ITIN Loans

2 Comments on Mortgage rate freeze reached

This is going to make for a lot of interesting blogging and headlines. Did you happen to catch my most recent?

12/06/2007 01:56 PM by Novation Mortgage

This is nothing more than a political move. It looks like Bush is doing something substantial, but it really has no impact.

Consider this,... one of the criteria to qualify for the rate freeze is to not have been 30 days late since the current loan has been in place. There were so many good 100% financing programs available 2 years ago that good borrowers did not have to get subprime loans for these purchases. I would speculate that 75% (or more) of the subprime loans originated 2 years ago were for legitimate subprime borrowers who had sub 600 FICO scores. I would venture to guess that well over half of these people have been late on their mortgage in the last 18 months.

This means that of all the subprime loans that are "targeted" for this interest rate relief - over 50% of them will not qualify due to their mortgage history.

Jim in Phoenix (mortgage broker)

12/28/2007 12:57 PM by Jim Cunningham (Community First Financial)

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